Which of the following results in a probability distribution for possible project outcomes rather than a dollar estimate?
A) Sensitivity analysis
B) Simulation
C) Value driver analysis
D) Scenario analysis

Question

Quizplus · Accepted Answer

Simulation is a technique used to generate possible scenarios that result in a probability distribution of project outcomes rather than a single dollar estimate. It involves creating a model that incorporates a range of possible variables and inputs, and then running multiple iterations to see the different possible outcomes. Sensitivity analysis, value driver analysis, and scenario analysis all involve varying inputs and analyzing the impact on project outcomes, but they do not result in a probability distribution of outcomes.

Which of the Following Results in a Probability Distribution for Possible